Bitcoin Lolling Over $29,100; Can US Inflation Data Fuel BTC To Climb The $30K Mark

The leader of the cryptocurrency market, Bitcoin traded on a volatile note during Tuesday's session. BTC currently traded over the $29,100 mark, however, it slipped below $28,800 in the early hours. This is despite Wall Street witnessing robust gains as investors turned optimistic for US inflation data scheduled later in the week. It makes crypto lovers wonder what will be a fuelling factor for Bitcoin to climb to 30,000 levels.

On CoinMarketCap, at the time of writing, Bitcoin traded at $29,163.04, up by 0.14% over the last 24 hours. The market value of BTC is over $567.22 billion. The crypto ranged from the intraday high and low of $28,724.14 to $29,244.28.

Despite the seesaw performance, Bitcoin's dominance is currently at 48.83%, up by 0.22% over the day.

Parth Chaturvedi, Investments Lead, CoinSwitch Ventures said, "BTC (+0.1%) continues to see another day of flat price action trading in a small 2% range while other major altcoins continue to book small losses."

Bitcoin's latest price is a decline of nearly 58% from its all-time high of $68,789.63 which was witnessed in November 2021.

According to the CoinDesk report, bullish traders are eyeing the upcoming U.S. July Consumer Price Index report for signs of continued inflation trends, with expectations set at a 0.2% monthly increase and a 3.3% year-over-year growth. In the backdrop is the Federal Reserve's historical monetary tightening and subsequent market anticipation of rate cuts, which have historically been intertwined with bitcoin's recent price fluctuations.

However, Chaturvedi earlier said, "On the macro front, inflation data (CPI) for July is slated to come out this week on Thursday (August 10). This may have an impact on markets at large which are expecting a rise of 0.3%."

Further, in the latest appearance on CoinDesk TV, "The Crypto Trader" author Glen Goodman expressed concerns about bitcoin not moving all that much in the last few months and that more regulatory clarity is required for the market to move. Goodman also pointed out that a correlation between US stocks and Bitcoin has pretty much broken out, and he argues that BTC may break below $25,000 by the end of 2023.

However, as per Checkmate, Glassnode report on Monday, Bitcoin markets are experiencing an incredibly quiet patch, with several measures of volatility collapsing towards all-time lows. Also, their weekly research revealed that both the 2015-16 and 2019-20 cycles experienced 6 months of sideways boredom before the market accelerated above the -54% drawdown level. Hence, the latest performance could perhaps be an indication of the boredom which may lie ahead.

Explaining further in detail, Glassnode's report said, "After a blazing hot start to 2023, both the quarterly and monthly price performance has cooled off. We can again see many similarities to prior cycles where the initial rally off the bottom is powerful, but leads into an extended period of choppy consolidation," adding, "This period is often referred to as the re-accumulation period by Bitcoin analysts."

Moreover, Glassnode's data also showed that the 30-day price range is even more extreme, constricting price to just a 9.8% band over the last month, and with only 2.8% of all months being tighter. It added, "Periods of consolidation and price compression at this magnitude are extremely rare events for Bitcoin."

Pointing out that the market is maintaining a relatively risk off stance with Bitcoin dominance within futures markets grinding slowly higher, Glassnode's analysis revealed that "This year has seen the scales tilt back in favour of Bitcoin, suggesting lighter liquidity and a reduced risk appetite remains a force moving capital up the risk curve."

On Monday, Wall Street halted its weekly losses ahead of the inflation report on Thursday. Dow Jones Industrial Average surged by 1.2%, S&P 500 index zoomed by 0.90% and the tech-heavy Nasdaq picked up by 0.61%.

At present, the big development that has the possibility of major movements in Bitcoin would be US inflation.

Broadly, the global crypto market is down by 0.30% over the last day to trade at $1.16 trillion. The total crypto market volume over the last 24 hours is $32.38B, which makes a 49.79% increase. The total volume in DeFi is currently $2.8B, 8.65% of the total crypto market 24-hour volume. The volume of all stablecoins is now $30.39B, which is 93.85% of the total crypto market 24-hour volume.

Also, Chaturvedi added, "The crypto market continues to be range-bound. The global crypto market capitalization, down 0.2%, continues to be above $1.2 trillion. The crypto fear and greed index, however, has jumped 5 points and continues to remain in the neutral zone with a score of 54/100."